is exercise requires students to calculate personnel compensation costs for an a

is exercise requires students to calculate personnel compensation costs for an
agency of local government. It is a simplified example, but should illustrate the
more complex tasks that real-world budgeters do on a regular basis. Please
examine the Excel spreadsheet for this exercise. The basic data are included for
the calculation of the compensation costs for a fire department. More figures can
be derived to complete the spreadsheet.
First of all, calculate the wages and salaries for the members of the fire department.
That will require multiplying the wages or salary by the number of employees in
each pay grade. Then calculate the Social Security tax contribution, the pension
contribution, and the health insurance contribution. The Social Security,
Medicare, and pension contributions are percentages of the wages. The tax base
for the Social Security is capped at $118,500. The health insurance contribution is
a fixed dollar amount per employee per month. The part-time employees do not
receive health insurance benefits. Calculate the annual expenses for uniforms,
remembering that the clerical workers do not have a uniform allowance. Derive
the total compensation costs, the salary and wage costs, and the non-wage fringe
benefit costs for the fire department.